ThinCats widens sources of new loans

THINCATS said it has widened its sources of new loans, thanks to “considerable” investment in its network of ‘introducers’.

The peer-to-peer lender has a network of financial professionals – who it calls sponsors – who vet loans and pass them on to the platform for further appraisal. Introducers send potential business to the sponsors.

“A core goal for ThinCats is to increase the volume and range of deals available to lenders on the platform,” said the firm. “As all our loans are introduced through sponsors and other business professionals, it’s vital that we develop our relationships with those best able to provide the lifeblood for SME P2P lending.

“We have allocated considerable resources to this, and are delighted to see that it is beginning to bear fruit. Loans from new sources are beginning to appear on the platform.”

ThinCats, which originates secured business loans, said one example was a recent £1.25m loan for Arrow Cars, brought to its sponsor ESF Capital by introducer SME Capital. The Leeds-headquartered private hire company was looking to raise money to expand the size of its fleet from 500 to 600.

Antoine Grisay, chief executive of SME Capital, said: “The deal was a straightforward credit story, and the company wanted to deal with someone who could make a rapid underwriting decision.

“The process went very smoothly – the deal was structured rapidly, and was executed in just a few weeks.”

The loan was listed at eight per cent and security included first ranking debenture over the assets and a share pledge.

ThinCats has brought its loan monitoring in-house in recent months to improve the service for lenders.

“Historically, loan monitoring was the responsibility of sponsors,” it said. “However, we recognise that they of necessity have a greater focus on borrowers, and this was very much a lender-orientated service.”